Wanted: Big Brother to keep eye on builders

It was in 2007 that the state government had promised it would set up a regulatory body on housing to keep a check on builders.More than two years later, the body is yet to be constituted.

It was in 2007 that the state government had promised it would set up a regulatory body on housing to keep a check on builders.More than two years later, the body is yet to be constituted.

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Last week, the high court upheld the Brihanmumbai Municipal Corporation’s order to demolish 17 illegal floors of the 24-storey Gaurav Gagan building at Kandivli and brushed aside the plea of the residents for relief in this case.

Activists say a regulatory body could have prevented this, as it would have then been mandatory for every builder to submit details of approved plans and also give a bank guarantee along with an undertaking to complete the work according to the registration conditions.

Ramesh Prabhu, chairman, Maharashtra Societies Welfare Association, said it will make builders accountable.
“Due to lack of regulation, anyone can just become a builder and announce fancy schemes without any basis. This will be stopped,” said Prabhu.

The Centre has already prepared and circulated a draft of the Model Real Estate (Regulation of Development) Act aimed to bring transparency in the real estate sector and punish errant builders. If the builder violates laws, his registration is cancelled and his name, blacklisted. He can also be arrested and penalised.

The state government is, however, taking its time to adopt the bill. “We are studying the bill and will introduce it shortly,” said Sitaram Kunte, state housing secretary. Kunte said that the government would have to study other acts like the Maharashtra Ownership Flat Act (MOFA) to incorporate clauses from them into the proposed Act.

Builders have opposed the Act saying it will only lead to more delays in projects. “The existing laws under MOFA are adequate and if anything is needed they should be amended to make it more stringent instead of creating a regulatory body,” said Sunil Mantri, president-elect, Maharashtra Chambers of Housing Industry, an apex body of builders.

Real estate lawyer Vinod Sampat blamed the delay on implementing the bill on pressure from the builders’ lobby that often funds political parties.

“There is no serious effort to bring about transparency in this sector,” said Sampat.